AI Code Tools Market Share, Size, Trends, Industry Analysis Report, By Offering (Tools, Services); By Technology; By Application, By Industry Vertical, By Region; Segment Forecast, 2024 - 2032
- Published Date:Mar-2024
- Pages: 118
- Format: PDF
- Report ID: PM4671
- Base Year: 2023
- Historical Data: 2019 – 2022
Report Outlook
AI code tools market size was valued at USD 3.97 billion in 2023. The market is anticipated to grow from USD 4.91 billion in 2024 to USD 27.17 billion by 2032, exhibiting the CAGR of 23.8% during the forecast period.
Market Overview
The concern of complex coding tasks faced by the developers has significantly increased the demand for AI code tools. Growing digital transformation and increasing requirements of software across various industries are driving the market growth. Moreover, rising demand for the tools for speeding up the coding process is propelling the growth of AI code tools market. Furthermore, the market growth is also driven by the growing investment for companies offering these tools.
- For instance, according to recently published news article by The Economic Times, in December 2023, SenseAI (an AI Investment Firm) announced the investment of USD 25.0 million for Indian artificial intelligence start-ups over the next three-and-a-half years.
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The increasing demand for software development coupled with the growing need to assist developers in tackling complex coding tasks are contributing to the AI code tools market expansion. Moreover, the strong focus of various industries towards automation will fuel the market growth significantly. Furthermore, an increased adoption of low-code and no-code platforms is expected to strengthen market growth during the forecast timeframe.
However, AI code tools may unintentionally hinder developers' critical thinking and creative problem-solving skills. Moreover, concerns related to data security and privacy pose serious risks for the growth of AI code tools market. Furthermore, the complexities in several applications requiring complicated algorithms, unique data processing requirements, and detailed logic can pose a challenge to the software quality thereby, limiting the growth of AI code tools market.
Growth Factors
Increasing demand to help developers with complex coding tasks will drive the AI code tools market growth
AI code tools are transforming software development by improving productivity and optimizing processes through the use of machine learning and artificial intelligence. The AI code tools reduces the efforts of manual writing of complex codes and assist the developers to generate these codes quickly. This ability of AI code tools to save the time of developers for complicated tasks drives the overall market growth. For instance, in August 2023, Meta introduced an AI tool for coding named Code Llama. This tool has a potential to reduce the entry barrier of new code learners and can enable the developers to work more quickly and efficiently. The advent of such more tools will significantly increase the adoption of AI code tools thereby, spurring the market growth.
Digital transformation across various industries will propel the market growth in the coming years
Various industries are focusing on digital transformation for the benefits such as higher revenue, improved operational efficiency, and lower expenses. As a result, the combination of AI and machine learning help industries to adapt easily to the changing market conditions. Increasing complexity of software requirements as per the needs of customers across various industries is making the software development process challenging for the developers. Thus, the growing concern of high complexities in software coupled with an increasing focus of industries towards automation will increase the need for coding assistant tools thereby, fostering the growth of AI code tools market.
Restraining Factors
Several disadvantages of AI code tools will hamper its adoption in the coming years
The lack of knowledge of developers can lead to the ignorance of potential problems associated with the code produced by AI tools. This ignorance can result in improper implementations, poorly optimized code, and problems with security. For instance, according to a new survey conducted by cybersecurity startup Snyk Ltd. in November 2023, more than half of the developers involved in the survey acknowledged that generative AI tools frequently result in insecure codes. Moreover, an excessive dependence on AI code tools might hamper the problem-solving ability of the developers. Thus, failure of developers in maintaining the balance between automated tools and their critical thinking skills will have a negative impact on the AI code tools market growth.
Report Segmentation
The market is primarily segmented based on offering, technology, application, industry vertical, and region.
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By Offering |
By Technology |
By Application |
By Industry Vertical |
By Region |
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By Offering Insights
The services segment is anticipated to expand at the significant CAGR in the projected years
The services segment is expected to witness the considerable growth during the forecast period. The services provide a holistic approach for the implementation of artificial intelligence thereby, revolutionizing the way companies use AI. For instance, managed services, which are commonly offered by third-parties, include every aspect of managing AI systems. Moreover, the assurance of smooth operations of AI solutions coupled with the responsibility taken by the service providers for data preparation, model training, deployment, and ongoing monitoring will drive the segmental growth in the coming years.
By Technology Insights
The machine learning segment held the significant market share in 2023
The machine learning segment accounted for the largest market share in 2023. The precision and relevance of code suggestions provided by machine learning algorithms is one of the major factors contributing to the segmental share. Moreover, the test cases created using machine learning improves the effectivity of the testing process thereby, attracting the developers towards this technology. Furthermore, the ability to provide the relevant recommendations on the basis of various factors such as coding patterns, written code, and developer’s intent is expected to propel the segmental growth during the forecast period.
By Industry Vertical Insights
The BFSI segment dominated the global AI code tools market
Based on industry vertical, the BFSI segment held the dominant market share in 2023. Increasing needs in BFSI sector such as improvement in client experiences, enhancements in risk management, and streamlining of operations have contributed to the increased demand for AI code tools. Moreover, the ability of AI code tools to analyze the large volumes of unstructured data from sources such as customer queries, financial statements, and loan applications drives the segmental growth. Furthermore, the high priority to security coupled with the growing adoption of AI code tools by insurance companies, banks, and financial institutions will continue to strengthen the segmental growth during the forecast timeframe.
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Regional Insights
North America recorded the largest market revenue in 2023
North America dominated the global AI code tools market in 2023. The emergence of groundbreaking applications of AI across finance & healthcare industries coupled with leading position of the U.S. in terms of AI research & technology are contributing to the dominance of this region. For instance, in January 2024, the U.S. National Science Foundation along with the collaborating agencies, announced the launch of National Artificial Intelligence Research Resource (NAIRR) pilot. With the support of this shared research infrastructure, access to vital resources that drive responsible AI innovation and discovery will be strengthened. Moreover, the developers’ need to minimize the complexities associated with the software and the advent of innovative AI code tools will contribute to the market growth throughout the forecast period.
Asia Pacific is projected to witness considerable growth in the upcoming years
Asia Pacific region is anticipated to expand at the highest CAGR in the projected years. A large pool of tech talent including software developers, data scientists, and AI engineers, resides in Asia Pacific region. The surging use of assistant tools by these professionals for increasing the efficiency and productivity will contribute to the Asia Pacific AI code tools market expansion. Moreover, rising adoption of AI to develop inventory management solutions, recommendation systems, and chatbots for customer services across the rapidly growing e-commerce and retail sectors will prove beneficial for the market growth. Furthermore, the significant increase in the adoption of AI in education, health, finance, mobility, e-commerce, and manufacturing sectors is expected to fuel the AI code tools market revenue during the projected period.
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Key Market Players & Competitive Insights
Competition in the market is driven by innovation and product differentiation
The market is characterized by the strong competition, owing to the significant shares accounted by key companies. The key companies are constantly focusing on innovation, product differentiation, and improvement of user experience in order to strengthen their shares in the market. For instance, in November 2023, Amazon Web Services (AWS) announced a new generative AI-powered assistant, Amazon Q. This innovative tool aims to completely reimagine the nature of work in future by enabling employees to generate content and solve problems. Moreover, the increasing partnerships and collaborations between the industry players coupled with the introduction of new and efficient AI code tools will attract the large pool of developers thereby, fueling the market growth.
Some of the major players operating in the global market include:
- Amazon Web Services (AWS) (U.S.)
- CircleCI (U.S.)
- Datadog (U.S.)
- Google LLC (U.S.)
- IBM Corporation (U.S.)
- JetBrains s.r.o. (Czech Republic)
- Lightning AI (U.S.)
- Meta Platforms Inc. (U.S.)
- Microsoft Corporation (U.S.)
- OpenAI (U.S.)
- Replit (U.S.)
- Snyk (U.S.)
- Sourcegraph (U.S.)
Recent Developments in the Industry
- In February 2024, Microsoft Corporation’s has announced that its GitHub is expected to introduce a pricier paid version of its artificial intelligence software development tool in the near future.
- In December 2023, Sourcegraph announced the launch of Cody tool that uses generative artificial intelligence (AI) tools to write and fix code. This tool enables the developers to write the code faster.
Report Coverage
The AI code tools market report emphasizes on key regions across the globe to provide better understanding of the product to the users. Also, the report provides market insights into recent developments, trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides detailed analysis of the market while focusing on various key aspects such as competitive analysis, offering, technology, application, industry vertical, and their futuristic growth opportunities.
AI Code Tools Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 4.91 billion |
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Revenue forecast in 2032 |
USD 27.17 billion |
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CAGR |
23.8% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
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Regional scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The AI Code Tools Market report covering key segments are offering, technology, application, industry vertical, and region.
AI Code Tools Market Size Worth $27.17 Billion By 2032
The AI code tools market exhibiting a CAGR of 23.8% during the forecast period.
North America is leading the global market
key driving factors in AI Code Tools Market are increasing demand to help developers with complex coding tasks will drive the AI code tools market growth
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